I've tried this but it didn't work and seemed to be for osx. I have a fresh Ubuntu 10.10 (x64) install with rvm, rails 3 and ruby 1.9.2. I have a new rails app but using either gem or rails results in the following warnings (with lag).

1 Answer
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The message indicates that the directory /home/chance can be written to by everyone, which is a potential security hole. That could allow malicious users to put files in that directory and then the owner of the directory could use the accidentally.

To fix, remove the world-writable bit from /home/chance:

$ chmod o-w /home/chance

If you aren't the owner of /home/chance, you will need to do this as root via sudo: